Finance
A Pennsylvania home equity loan for $50,000 is approved at 8% for 10 years. The monthly interest for the first month is approximately:
A$267
B$333✓ Correct
C$400
D$500
Explanation
Monthly interest = Principal × Annual Rate ÷ 12 = $50,000 × 8% ÷ 12 = $50,000 × 0.00667 = $333. This is the interest portion only of an amortizing payment — the total payment includes principal paydown as well.
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